Overall, the Fraport Executive Board described the operating and financial development in the reporting period as positive and maintains its overall forecasts for FY24.

In the first quarter of 2024, the number of passengers in Frankfurt Airport increased by 10.4% compared to the previous year to approximately 12.5m passengers. Operations were impacted however by multi-day strikes by different trade unions in the first three months of 2024.

Those 12.5m passengers equate to around 85% of the pre-crisis level in 2019, and Fraport noted the overall positive traffic development and price effects led to an increase in revenue from airport charges, aviation security charges, infrastructure charges, and ground services.

“Frankfurt Airport was impacted by strikes on several days in the first three months of 2024. Some 600,000 passengers were affected by the strikes in addition to weather-related cancellations,” noted Stefan Schulte, CEO of Fraport AG.

In spite of these adverse effects, the new business year got off to a good start. This was, in particular, attributable to growth at our Group airports outside Germany, with many of them exceeding pre-crisis levels again,” commented Schulte.

Revenue and EBTIDA

Group revenue reached €890.2m (£760m), a 16.3% improvement year-on-year (Q123 saw £653m revenue).

In Frankfurt alone, retail and parking revenue increased by £5.5m, and in the first quarter of 2024, revenue in the aviation segment (as a whole) amounted to £226m.

This was above the level in the same period of the previous year by €38.9m.

At £181m, Group EBITDA was £46.4m above the level in Q123. At £110.84m (+11.4%), depreciation and amortisation increased, in particular at the Frankfurt site and in Lima.

This led to a Group EBIT of £70.84m (Q123 EBIT was £35.8m).

Adjusted for contract revenue from construction and expansion services based on the application of IFRIC 12, group-wide revenue amounted to €763.5m.

IFRIC 12 is a framework for the application of IASB frameworks (International Accounting Standards Board) to service concessions of financial and/or intangible assets.

Fraport AG noted its operating expenses increased primarily due to higher concession charges related to increased traffic volume and higher personnel expenses.

Adjusted for IFRIC 12, operating expenses increased by £52.9m to £513m. At a value of £181m, Group EBITDA in the reporting period was above the value of the previous year (Q1 2023 Group EBITDA was £135m).

Cash flow from operating activities increased to £137m (Q1 2023 saw £71.6m) as a consequence of the increase in operating result.

Traffic and growth

Overall, the Fraport Executive Board described the operating and financial development in the reporting period as positive and maintains its overall forecasts for FY24.

At around 0.5 million metric tons, cargo traffic at Frankfurt Airport grew by 5.9% in the first quarter of 2024.

Fraport noted positive momentum came from the global economic environment, particularly traffic from Asia, though across its international airports, the development of passenger numbers was mixed.

Outside Frankfurt, contributions to adjusted revenue growth came in particular from the Group company Fraport USA (£11m) due to the take-over of center management operations at the Washington Dulles and Reagan Airports and Lima (+€11.7m) based on the positive traffic development.

In Greece and Antalya there was still a high demand for holiday travel.

The airports in Peru and Slovenia benefited from a larger number of offered routes and frequencies provided by different airlines.

Offsetting effects led to negative traffic development in Bulgaria and Fortaleza.

Full-year outlook

In a a statement, Fraport AG noted Fit expects passenger numbers for Frankfurt Airport to reach between 61m and 65m travellers in 2024.

Group EBITDA is forecast to be between about £1.08bn £1.16bn.

The Group result (net profit) is projected to lie between approximately £371m and £452m.

READ MORE: Bulgari, Fraport and Gebr. Heinemann partner on new Frankfurt store